Klarna, the Swedish “buy now, pay later” fintech company, used an AI-generated version of its CEO to deliver bad news about customer loan repayment rates.
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Why aren’t Klarna customers repaying their loans?
According to the press release, which was accompanied by the AI video, Klarna customer credit losses from failing to repay loans rose to 17% in Q1 of 2025.
The “buy now, pay later” microloan platform allowed customers to purchase everyday items from DoorDash, Walmart, eBay, and more.
However, a survey by LendingTree found that 41% of American customers paid their loans late within the last year.
Fast Company reported that this drop in repayment may be linked to plummeting consumer confidence. Cost of living remained high in Q1, and fears of tariffs continued even after the most recent 90-day pause.
Klarna customers may have used the microloans to stretch their budget, making repayment less of a priority.
What do Klarna customers say?
On Reddit, Klarna customers discussed why they haven’t repaid their “buy now, pay later” loans. Many said their defaulted loans haven’t been reported to the credit bureaus.
“They just have a debt company email you everyday other week lol it doesn’t hit your credit,” a Redditor claimed.
“Used them for years and had to default over a year ago and nothing was ever reported,” another said.
“I’ve had klarna for years and recently couldn’t pay them back it’s been a year and it’s not on my credit at all,” a third added.
Others shared the consequences of not repaying their loans.
“My sister didn’t pay them, and they sent her $50 to collections. Now it’s on her credit report,” one wrote.
“They will send them to collections and from there it is handled like a defaulted credit card…” another said.
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